Acceleware secures investment from major oil sands producer
Acceleware Ltd. (TSX-V: AXE) ("Acceleware" or the "Company") is very pleased to announce the participation of a major Calgary-based oil sands producer (the "Producer") in the commercial-scale RF XL pilot test of its radio frequency heating system. The Producer will provide funding of up to $2 million toward the RF XL pilot under the terms of a project funding agreement with Acceleware. In exchange for the funding, the Producer will be able to provide input into pilot designs and test specifications prior to completion, and will receive, along with the other pilot participants, exclusive access to the full set of detailed technical data and test results for one year following completion of the pilot. Acceleware has granted the Producer prioritized rights to host a subsequent test of Acceleware's RF XL technology, preferred pricing on pre-commercial products, and preferred access to RF XL products over operators who do not participate in the pilot.
"Securing $2 million in financial support plus certain technical input from a major oil sands operator is a substantial advancement in our commercialization efforts for RF XL." said Geoff Clark, CEO of Acceleware. "We are excited to have secured investment from an industry leader who is interested in our work to further develop and prove this technology."
"Acceleware believes that RF XL technology can radically improve the economic and environmental performance of heavy oil and oil sands production, and will be a critical tool in the profitable and responsible development of the oil sands," added Mike Tourigny, VP Commercialization RF Heating.
As announced on July 17, 2018, the test will be completed at Prosper Petroleum Ltd.'s Rigel property in the Athabasca Oil Sands. Acceleware estimates the cost to complete the RF pilot will range from $16 to $20 million. The $2 million in financial support from the Producer together with $10 million in non-repayable funding from Sustainable Development Technology Canada and Emissions Reduction Alberta and other funds, brings the total non-dilutive capital financing raised to date to an excess of $15 million.
Acceleware has been advancing the development of its proprietary and patented RF XL technology since 2010. The Company believes RF XL has the potential to save billions in oil sands production costs by reducing both capital and operating costs, while offering significant environmental benefits, including immediate greenhouse gas (GHG) emission reductions, a substantial decrease in land use, no requirement for external water or solvents and no tailings ponds. It also has the potential to be re-deployable from location to location and adapted to a multitude of reservoir types. As an electrically driven process, Acceleware also believes that RF XL technology can provide a clear pathway to zero-GHG production of heavy oil and oil sands.
Acceleware has appointed GMP Securities L.P. ("GMP FirstEnergy") as exclusive financial advisor to assist in the full funding of the RF XL pilot program. GMP FirstEnergy provided advice on the completion of the project funding agreement.